SuperDerivatives®, the benchmark for options and the leading provider of multi-asset option pricing, independent revaluation, trading and risk management systems, announced today that TFS Energy selected its online real-time pricing and analytics platform, SD-CM, for use by its traders and clients who trade C02 emissions options.
Founded in 1985, TFS is a global market leader in the inter-dealer brokering of financial and non-financial products. With offices worldwide, TFS Energy brokers a full spectrum of OTC energy and energy-related physical and derivative products, including electricity, natural gas, crude oil and refined products, coal, environmental products, weather derivatives, and exchange-traded futures and options. Today, the company’s London-based emissions-desk is a leading broker for the emissions markets in the European Union Emissions Trading Scheme (EU ETS).
Emissions trading first began in July 2003 when the European Council formally adopted the Emissions Trading Directive as a measure to reduce the amount of greenhouse gases released in the environment. “The SD-CM platform is enabling TFS users to structure and price emissions strategies quickly, easily and accurately, while providing us with rich and effective risk management functionality,” said David Jenkins, global manager of Environmental Products, TFS Energy. “We are looking to SuperDerivatives to enable us to deliver definitive trading prices and rich analysis tools for emission options to our clients and trading partners. The platform’s ease-of-use, powerful features and messaging tools will surely help us to quickly grow the emission option trading community.”
Carbon emission options is a recent addition to web-based SD-CM which combines real-time benchmark pricing with risk management, analytics, hedging and marketing tools for options on energy products, base and precious metals, and agriculture commodities. Other supported energy products include crude oil, natural gas, jet fuel, Nymex/ICE oil products, and residual fuel oil.
“The addition of emission options to our platform reflects SuperDerivatives’ strong commitment to continuously be at the forefront of all derivative options developments. An evolving market such as Carbon Emissions demands the level of benchmark pricing that only SuperDerivatives can deliver. The resulting increased transparency and risk management capabilities are bound to increase liquidity and expand the market – a process we have repeated time and again in various option markets globally,” said David Gershon, president and ceo, SuperDerivatives. “We are happy to contribute in any way, and especially in cooperation with an esteemed partner such as TFS, to help the reduction of emissions.”